On 16th, the Korea Composite Stock Price Index (KOSPI) closed down 1%. The deepening trade conflict between the U.S. and China heightened caution, applying downward pressure on the domestic market following losses on the New York Stock Exchange. In particular, the U.S. export restrictions on semiconductor products to China resulted in declines in the stock prices of Samsung Electronics and SK hynix, which weighed on the index.
According to the Korea Exchange, the KOSPI index closed at 2447.43, down 29.98 points (1.21%) from the previous trading day. The index started at 2472.78, down 4.63 points (0.19%) from the previous trading day, and expanded its losses. At one point during the session, it dropped to 2442.72.
Foreign investors led the index decline with a net sell of 464.5 billion won. Since beginning net selling at 688.8 billion won on the 11th, foreign investors marked their fourth consecutive day of 'Sell Korea' by the end of this day. Institutional investors also net sold 35.2 billion won. Although individuals net bought 407.9 billion won, it was insufficient.
The U.S. government's export restrictions on semiconductors to China directly impacted the domestic stock market. This came after the U.S. government announced it would restrict exports of 'H20,' a low-performance artificial intelligence (AI) semiconductor from Nvidia, to China. The trade conflict between the U.S. and China seems to be spreading into the semiconductor sector.
The stock price of Nvidia, which had risen during regular trading, dropped 6.3% in after-hours trading that morning. As a result, the stock prices of Samsung Electronics and SK hynix, which account for a quarter of the KOSPI's market capitalization, failed to gain traction. The stock prices of Samsung Electronics and SK hynix fell by 3.36% and 3.65%, respectively.
Lee Kyung-min, a researcher at DAISHIN SECURITIES, noted, 'SK hynix is a key vendor for Nvidia,' adding, 'Samsung Electronics is known to supply HBM for low-performance chips to China.' Han Ji-young, a researcher at Kiwoom Securities, said, 'The bad news from Nvidia has cast a stone into the calm lake.'
Currently, in response to tariff attacks from U.S. President Donald Trump, China is retaliating with a ban on rare earth exports and a halt to aircraft deliveries. As the U.S. struck back with semiconductor measures, stocks of automotive companies such as Hyundai Motor and Kia, which had risen on expectations of exceptions to tariffs on auto parts the previous day, also declined.
Additionally, the stock prices of Samsung Biologics and Celltrion fell, causing 8 out of the top 10 stocks by market capitalization in the KOSPI to decline. In contrast, amid rising geopolitical tensions, defense stocks such as LIG Nex1, KAI, and Hyundai Rotem showed strength.
On this day, KOSPI transaction volume was recorded at 610.3 million shares, with trading value totaling 6.6662 trillion won. A total of 577 stocks, including 1 stock that hit the lower limit (Heungkuk Fire&Marine Insurance), fell. This means that approximately 62% of the total 934 stocks declined. Conversely, 302 stocks, including 3 that hit the upper limit, rose.
The KOSDAQ index closed down, surrendering the 700 mark. It ended at 699.11, down 12.81 points (1.80%) from the previous day. Foreigners led the decline with a net sell of 146.8 billion won. Institutions also net sold 91.1 billion won, while individuals net bought 244.9 billion won.
By individual stocks, many of the top market capitalization stocks in the KOSDAQ market such as Alteogen, ECOPRO BM, Ecopro, Rainbow Robotics, LigaChem Biosciences, and PharmaResearch closed down. Stocks like HLB, HUGEL, and CLASSYS managed to finish the session with gains.
Meanwhile, policy-themed stocks surged to their upper limits on this day. The Democratic Party of Korea's Special Committee on Small and Medium Enterprises proposed that remote healthcare policies be reflected in the presidential election pledges the day before, leading related stocks such as Carelabs and INSUNG INFORMATION to rise to their price limit.
Meanwhile, as of 3:30 p.m. in the Seoul foreign exchange market, the won/dollar exchange rate recorded 1426 won, down 1.2 won (0.08%) from the previous trading day.